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Stock Market Carnage Continues in Speculative Growth Stocks

The carnage continues in speculative growth stocks, as numerous names fell hard once again.

Today, Wednesday May 11, 2022, the NASDAQ composite shed 3.2% to close at 11364. The S&P 500 fell just 1.6% to land at 3935.

Speculative Stock Selloff

Former leading aggressive growth growth stocks drew the brunt of the pain, including:

Travel Related Names Are Holding Up Well

Outside of oil stocks, there’s not much going up in this Bear Market. One segment that’s holding-its-own is travel related stocks, including Booking (BKNG), MasterCard (MA) and Visa (V).

Here’s a ten-year chart of Visa we made over the weekend.

V has been a great stock for conservative investors with an excellent safety rating, an Estimated Long-Term Growth Rate of 18%, a dividend yield of less than 1%, and a stock buyback program. This stock is appreciated amongst institutional investors for its consistent sales/profit/stock growth. It’s business model doesn’t rely on a big sales or R&D budget, so management has loads of cash coming in to buy back stock. Last qtr, management repurchased $4 billion in stock. In Fiscal 2021, management repurchased around $9 billion in stock.

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